Sandalwood hopes as SA crop

Sandalwood trees may give Eyre Peninsula and west coast farmers in South Australia an alternative crop during drought.

A demonstration site at Ceduna is proving successful.

Paul Hodges is with the project and points out the threatened species was once abundant on upper Eyre Peninsula.

He said sandalwood trees grown in Western Australia were in high demand in Asia.

Mr Hodges said the trees were suitable for poor soils.

"In Western Australia it was used quite extensively as an alternative source of income and this came on the back of a number of droughts," he said.

"This isn't designed to replace cropping and that but just gives another source of income for the farmers so it might help them get through some of the droughts.

"It has medicinal properties the oils in it - medicines, perfumes, soaps - a lot of the sandalwood that's farmed in WA is exported to Asia because there's a huge demand for it there. They use it for all those purposes but also in funeral pyres and that because they believe it has spiritual properties."